Property Insurance Principles and Coverage Quiz
10 Questions
3 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the principle of insurance that requires the insured to disclose all relevant facts that would increase the premium amount?

  • Indemnity
  • Subrogation
  • Utmost Good Faith (correct)
  • Insurable Interest

In insurance, what is the term used to describe the insured's monetary interest in the insured property?

  • Indemnity
  • Utmost Good Faith
  • Subrogation
  • Insurable Interest (correct)

Which principle of insurance involves the insurer compensating the insured for any possible damage or loss?

  • Subrogation
  • Indemnity (correct)
  • Insurable Interest
  • Loss Minimization

If there are more than one insurers, what can the insurer do according to the principle of Contribution?

<p>Ask other insurers to contribute their share of the compensation (A)</p> Signup and view all the answers

What is the duty of the insured in relation to loss minimization?

<p>To minimize the loss to the insured property on the happening of uncertain event (B)</p> Signup and view all the answers

What is the consequence of under insuring your property according to the text?

<p>The average condition will apply (C)</p> Signup and view all the answers

What happens if the premium is not paid within 60 days from the inception date of the cover?

<p>The insurance company will cancel the cover automatically (D)</p> Signup and view all the answers

Which type of home insurance covers loss or damage due to perils like impact with any of the buildings by any road vehicle or animals not belonging to the insured?

<p>House owner policy (D)</p> Signup and view all the answers

Which type of home insurance provides coverage for personal property and loss of use?

<p>Householder policy (D)</p> Signup and view all the answers

What does the term 'average condition' refer to in home insurance?

<p>A condition where under insuring leads to reduced coverage payout (A)</p> Signup and view all the answers

Study Notes

Principles of Insurance

  • The principle of Utmost Good Faith requires the insured to disclose all relevant facts that would increase the premium amount.

Types of Home Insurance

  • Home insurance that covers loss or damage due to perils like impact with any of the buildings by any road vehicle or animals not belonging to the insured is known as Special Perils Insurance.

Insurable Interest

  • Insurable Interest refers to the insured's monetary interest in the insured property.

Principle of Indemnity

  • The principle of Indemnity involves the insurer compensating the insured for any possible damage or loss.

Principle of Contribution

  • If there are more than one insurers, the principle of Contribution states that the insurer can call upon other insurers to share the loss.

Duty of the Insured

  • The duty of the insured in relation to loss minimization is to take all reasonable steps to minimize the loss.

Consequences of Underinsurance

  • If a property is underinsured, the consequence is that the insured will bear the shortfall.

Premium Payment

  • If the premium is not paid within 60 days from the inception date of the cover, the policy will lapse.

Types of Home Insurance

  • Contents Insurance provides coverage for personal property and loss of use.

Average Condition

  • The term 'average condition' refers to the assumption that the property is in a reasonable state of maintenance and repair at the time of the loss.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

Test your knowledge of property insurance principles and coverage including dwelling, other structures, personal property, loss of use, and liability coverage such as personal liability and medical payments coverage. Explore concepts like utmost good faith and insurable interest.

More Like This

Property Insurance Lesson 22.1
36 questions
Property Insurance quiz
30 questions

Property Insurance quiz

ExceptionalSchrodinger avatar
ExceptionalSchrodinger
Insurance Principles and Concepts
15 questions
Insurance Principles & Policies: A Comprehensive Guide
20 questions
Use Quizgecko on...
Browser
Browser